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Avamore Capital releases Q1 2019 market bulletin

February 19, 2019

Avamore has launched its Q1 2019 bulletin. Collating sentiments from brokers, developers and service providers from across the market, Avamore has drawn out key themes in the development finance and unregulated bridging sphere for the year ahead.

The report covers headline figures for the unregulated bridging and development finance space and explains trends and shifts the market has witnessed in comparison to 2018. It indicates the market responding to Brexit uncertainty with developers specifically looking for increased loan terms to compensate for the slowing sales cycle. Furthermore, lenders are seeking to de-risk deals offering lower leverage and tightening up on due diligence in the hope that transactions will successfully withstand any challenges which Brexit brings.

The report also considers wider themes such as the potential impact on land values as a consequence of falling GDVs, combined with increasing developer profit margins. Furthermore, with many concerned that values will not pick up and the slowing sales cycle continuing, the report examines the rise in the number of schemes with rental exits and the corresponding response from the lending sector and the buyer’s market. Whilst the report largely examines a reaction to the current market uncertainty, it also looks at the positive opportunities which the regions present.